Dissertation lyn woodward cwm jan 2010


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Dissertation lyn woodward cwm jan 2010

  1. 1. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASS Lyn Jessica Woodward Dissertation submitted in partial fulfillment for the Cape Wine Master DiplomaJANUARY 2010
  2. 2. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSDECLARATION―I, Lyn Jessica Woodward declare that this dissertation is my own, unaided work. It is submitted inpartial fulfillment of the requirements for the diploma of Cape Wine Master to the Cape WineAcademy. It has not been submitted before for qualification of examination in this or any othereducational organization‖____________________________ __________________________Signed Date i
  3. 3. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSACKNOWLEDGMENTSFirstly and most importantly, I would sincerely like to thank all of the industry players (too many tomention), from around the globe and in South Africa, for their insight and valuable information whichthey have contributed.Secondly, thank you to all the members of our wine group, ‗Wild Yeasts‘ who have supported andencouraged me. Special thanks to Tim and to Heidi for reading the drafts of this document, and forHeidi‘s persistent encouragement. To Duane for his formatting advice and finally, to Mike for hisweekly motivational chats.Lastly to my family and friends who have ‗endured‘ this process with me. A special thanks to Yvette,for her technical wizardry in assisting in the formatting of this document. ii
  4. 4. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSABSTRACTPackaging wine involves the science, art and technology of bottling, enclosing or protecting productsin the best medium for distribution, storage, presentation of goods for sale, and consumption.The majority of wine produced and sold globally is packaged in glass. Traditionally glass is anexcellent medium that serves the practical, aesthetic and quality protection requirements of a bottle ofwine well. In recent years however, wine retailers have become progressively more conscious ofenvironmental issues. This is driven primarily by legislation, and more recently by significant consumerawareness.The terms ―carbon footprint‖, ―environmental impact‖ and ―sustainable practice‖ are now well knownand understood by the consumer and have a direct and increasingly important influence on thepurchasing decision. Consequently wine producers are obliged first and foremost to act within theirlegal obligations and legislation, and then consider the best possible production and packagingchoices for minimal environmental impact to be successful in the South African and internationalmarkets.This report studies and summarises the packaging options available to the wine industry, including thepositives and negatives of traditional glass and alternative media. It is based on a review of availableresearch, literature and reports and on the opinions of local and international industry stakeholders.The report will further note technological advancements, including international packaging trends.Since over half of South Africa‘s wine production is exported, with the UK receiving the mostsignificant volumes, the demands and trading requirements of the UK wine market are included in thisreport. The report will confine itself to packaging trends of natural still wines and sparkling wines.Currently, glass remains the preferred packaging choice for wine. In the future producers will makeuse of alternatives such as polyethylene terephthalate, Tetra Pak cartons, aluminium cans, bag-in-box and pouches to fulfill increasing legal and environmental pressures whilst still providing the mosteffective means of protecting the quality and aesthetic appeal of their wine, and ultimately, remainingglobally competitive. iii
  5. 5. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSCONTENTSPART I 1CHAPTER 1 - INTRODUCTION 21.1 Scope and contribution of the report…………………………………………………………………….. 41.2 Outline of the document…………………………………..………………………………………………. 5CHAPTER 2 – FACTORS PLAYING A ROLE IN SA WINE PACKAGING 62.1 South African statistics – wine production and consumption (local)……………………………......... 72.2 South African statistics – wine exports………………………………………………………………….. 92.3 Legal obligations and requirements…………………………………………………………………….. 12PART II - PACKAGING ALTERNATIVES 15CHAPTER 3 - GLASS 163.1 LIGHTWEIGHT GLASS…………………………….…………………………………………………… 223.2 RECYCLED GLASS…………………………………………………………………………………….... 26CHAPTER 4 – PET BOTTLES………………………………………………………………………………. 31CHAPTER 5 –TETRA PAK CARTONS & VARIATIONS…………………………………………………. 39CHAPTER 6 – ALUMINIUM CANS…………………………………………………………………………..45CHAPTER 7 – BAG-IN-BOX………………………………………………………………………………….48CHAPTER 8 – OTHER 548.1 BULK PACKAGING ……………………………………………………………………………………….548.2 BLADDER PACKS/ FOIL BAGS………………………………………………………………………… 598.3 POUCHES…………………………………………………………………………………………………..608.4 GRAB-AND-GO-CONVENIENCE………………………………………………………………………. 62PART III 64CHAPTER 9 – CONCLUSIONS & RECOMMENDATIONS 659.1 Conclusions…………………………………………………………………………………………………659.2 Recommendations…………………………………………………………………………………………66REFERENCES………………………………………………………………………………………………….68APPENDIX………………………………………………………………………………………………………72 iv
  6. 6. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSLIST OF TABLES pageTable 1: South African Wine production vs. sales ....................................................................... 7Table 2: Wine Consumption in South Africa ................................................................................ 8Table 3: South African exports........................................................................................................ 9Table 4: South African exports: packaged and bulk..................................................................... 10Table 5: South African wine Sold in glass containers... .............................................................. 19Table 6: South African wine Sold in glass containers on the local market…............................. 20Table 7: South African wine Exported in glass containers vs. Other AP…................................ 21Table 8: Production of South African wine in Tetra Pak cartons................................................. 40Table 9: Exports of South African wine in Tetra Pak cartons...................................................... 41Table 10: Production of South African wine in BIB......................................................................... 50Table 11: Cost per litre – South African wine in BIB…................................................................... 50Table 12: Exports of South African wine in BIB.............................................................................. 52Table 13: Packaged vs. bulk South African wine exported during 2008 - litres........................... 58LIST OF FIGURESFigure 1: Results of impact leading on the outside surface of wine bottle weighing................. 24Figure 2: Glass recycling process.................................................................................................... 27Figure 3: South African glass recycling performance report......................................................... 28Figure 4: Composition of Tetra Pak cartons.................................................................................... 39 v
  7. 7. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSLIST OF ACRONYMS AND/ DEFINITIONSAP: refers to ‗alternative packaging‘BIB: Bag-in-BoxCarbon footprint : ―the total set of GHG emissions caused directly and indirectly by an individual,organization, event or producer‖ (UK Carbon Trust 2008) ―For simplicity of reporting, it is oftenexpressed in terms of the amount of carbon dioxide, or its equivalent of other GHGs, emitted.‖(wikipedia 2009)CO2 emissions: Carbon dioxide discharge/ productionCarbon neutral: business/household having net zero carbon emissions, achieved by offsetting CO2emissions by e.g. planting treesEVOH: Ethyl Vinyl AlcoholGHG: greenhouse gas: gases in the earth‘s atmosphere that absorb and emit radiationLCA: Life Cycle Assessment: Analysis and valuation of the environmental impact of a product orservice.LDPE: low-density polyethylenePET: polyethylene terephthalateRecyclable: adjective of ‗Recycling‘ – see below. In this report, recyclable refers to the capacity of aspecific packaging material to be recycled.Recycling: ―A series of activities that includes collecting renewable materials that would otherwise beconsidered waste, sorting and processing them into raw materials, and manufacturing these into newproducts.‖ (Glass Recycling Company)Re-use: “to utilise articles from the waste stream again for a similar or different purpose withoutchanging the form or properties of the articles‖ (Act No. 59, 2008 National EnvironmentalManagement: Waste Act, 2008) vi
  8. 8. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSSustainable development: pertains to finding the balance between economic, social andenvironmental demands.WIETA: Wine Industry Ethical Trade AssociationWRAP: Waste and Resources Action Programme, aids individuals, businesses and local authorities toreduce waste and recycle more, making better use of resources and helping to tackle climate change vii
  10. 10. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSCHAPTER 1INTRODUCTION “Let every individual and institution now think and act as a responsible trustee of earth, seeking choices in ecology, economics and ethics that will provide a sustainable future, eliminate pollution, poverty and violence, awaken the wonder of life and foster peaceful progress in the human adventure.” John Mc Connell, founder of International Earth DayTwenty years ago few would have imagined getting their daily milk delivery in anything other thanglass bottles delivered by the local milk man. Yet nowadays, milk is packaged in bladder packs, PETbottles and cartons amongst others, and bottled milk is a rarity. This basic illustration shows thattremendous advances have been made in packaging methods over recent years, which have spilledover into the wine industry.Packaging is one of the most important factors contributing to the commercial success of a product orbrand. Considerations in packaging choice include product protection, functionality, quality andaesthetic appeal.Packaging as seen from an environmental perspectiveLeading wine commentator and wine producer, Robert Joseph, speaking at Vinexpo 2009, believesthat there will be a global standard of sustainability in the wine industry within the next five years andthat a wine producer, no matter how large or small will need to conform to certain levels of sustainablepractice or risk their long-term viability. (Mustacich, S. 2009)American wine commentator and author, Eric Arnold, quoted a study by the American Association ofWine Economists in Forbes magazine that the production and distribution of wine was responsible fornearly 1% of total global greenhouse gas emissions annually - that is over six billion tons. (Kalkowski,J. 2008)Increasingly, environmental considerations appear to be a factor in packaging choice, asenvironmental consciousness becomes a larger issue of public debate and discourse. Consequently,retailers and consumers alike are set to become ever more conscious of terms like ―carbon footprint‖,―environmental impact‖ and ―sustainable practice‖. 2
  11. 11. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSWine producers will no doubt become obliged to not only embrace these trends in terms of productionbut also in the specific packaging methods they choose. Gordon Grant, managing director of Palandriwines in Western Australia notes: ―We‘re getting a lot of requests for eco-friendly packaging that areeither totally recyclable or which have a small footprint.‖ (Carter, F. 2006)Consumer perceptions are crucial in how a product is accepted into the market place, and theintroduction of new packaging formats is notoriously difficult to achieve successfully. Nick Zema,chairman of the Coonawarra Vigneron‘s Association in Australia, says that image plays a pivotal rolein wine and packaging choices; ―I think we need packaging that substantiates that.‖ (ABC 2006)Lifestyle choices play a large role in this process; eg: wine in non-glass packaging is available atoutdoor events, such as concerts, sporting events etc. Size has also influenced wine‘s accessibility;instead of having to purchase a 750ml bottle of wine, smaller units are available including single-serves which redefine how and when consumers drink wine.The South African wine industry spends roughly R4 billion annually on packaging. Very fewcompanies recognize the impact that packaging decisions have on the overall impact of the bottomline and of the opportunities that exist by considering the choices available. (Carter, M. 2009) 3
  12. 12. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASS1.1 Scope and contribution of the reportThe developments in packaging during the past five years have been tremendous, and have runparallel with the ―green‖ movement – and sometimes at odds with it. Producers are not only motivatedby the need to address environmental consciousness but also to widen the target market for theirproduct.The main objective of this report is to review wine packaging options to South African producers, forpossible use in the local and international markets. It will explain the current usage of packagingmethods and trends.This assignment will summarise recent developments in this field and will provide some examples,local and/or international, of AP (alternative packaging).The main focus of this assignment is to highlight more environmentally friendly wine packaging, interms of recyclability and reduction of carbon emissions, with the aim for wine producers to considerreducing their carbon footprint, especially in regard to the packaging and, where applicable, logistics oftransporting their wines to local and international markets.This report will not focus on the technical production methods of each AP, unless pertinent to itsfunction. It will rather provide insight into what is available and what are the advantages anddisadvantages of each AP.There is relatively little published data and analysis of wine packaging in the South African market. Akey objective is to summarise the available published data. A survey was conducted amongstselected producers and retailers and this provides views from knowledgeable professionals.However, there is more published data available internationally. As AP is still in its infancy in SouthAfrica, the international data will be incorporated into this report, together with literature andinformation from wine packaging suppliers. 4
  13. 13. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSOutline of the documentThe report is divided into three sections:Part 1: Provides a general overview of packaging and its importance in the wine industry. It providesa summary of the National Waste Bill of South Africa. It looks at South African industry statistics toprovide an outline of local production, consumption and export figures. This background showswhere packaging initiatives can be focused in the future.Part 2: Provides details of traditional glass wine packaging and the alternatives available. Thebalance of this section provides an outline of the various alternative wine packaging available.Part 3: Provides general conclusions on packaging in context of the South African wine industry andhighlights areas that need addressing in the future. 5
  14. 14. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSCHAPTER 2FACTORS PLAYING A ROLE IN SA WINE PACKAGING “Nevertheless, the concept of sustainable development is now known – even amongst those who haven’t accepted it – and it’s recognized, debated and followed by an increasing number of businesses.” Maurice StrongWine packaging choices are based on a variety of factors that maybe change in priority amongstdifferent markets, both locally and internationally. These factors include: Consumer perception of price and quality; the more expensive the product the more it is expected to be delivered in premium packaging. Consumer lifestyle; more active outdoor lifestyles require convenient and shatterproof wine packaging. Changing interests in wine; no longer a drink for special occasions, wine is consumed more frequently. Larger quantities need to stay fresher for longer and smaller single-serves are available. Finally, as environmental concerns are coming ever increasingly to the fore, packaging alternatives need to factor in these criteria when packaging choices are made. 6
  15. 15. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASS2.1 Wine production and consumption in South AfricaTable 1: South African Wine Production vs. Sales Statistics 2006 2007 2008 2008/2007GRAPES CRUSHED TONS TONS TON S TRENDWhite varieties 808 225 834 282 885 044 106.1Red varieties 404 758 436 723 454 833 104.1Table grapes 88 596 80 442 85 735 106.6Total 1 301 579 1 351 447 1 425 612 105.5 2006 2007 2008 2008/2007PRODUC TION MILLION LITRES TRENDWhite 450.7 466.8 476.3 102.0Red 259.0 263.7 287.0 108.8Total 709.7 730.4 763.3 104.5 2006 2007 2008 2008/2007DOMESTIC SALES MILLION LITRES TRENDNatural wine 298.6 312.1 312.3 100.1Fortified wine 33.5 34.1 33.7 98.8Sparkling wine 8.6 9.5 10.1 106.9Total 340.7 355.7 356.1 100.1 2006 2007 2008 2008/2007EXPORTS MILLION LITRES TRENDNatural wine White 115.9 126.7 173.6 137.0 Red 137.0 164.2 209.3 127.5 Blanc de Noir / Rosé 16.3 18.4 24.5 133.2Subtotal 269.2 309.3 407.4 131.7Sparkling wine 2.0 2.8 4.0 142.9Fortified wine 0.5 0.4 0.4 100.0Grand total 271.7 312.5 411.8 131.8 2006 2007 2008 2008/2007STOCK (as on 31 D ecember) MILLION LITRES TRENDTotal 403.1 425.2 357.2 84.0Source: Sawis 2009 annual reportTable 1 gives an overview of the South African wine industry in terms of quantities of wine made, whatconsumers are drinking and consumption locally and internationally. An increase in the total amountof grapes crushed has led to an increase in wine production in South Africa, with over 760 million litresbeing produced in 2008. The trend of sales in the domestic and export market for the past threeyears, 2006 – 2008 has increased year on year. Specifically, sparkling wine sales have seen a smallrise in both markets. Natural wine sales have increased marginally locally, yet have seen a significantgrowth in export sales. Sales of fortified wines in both the export and local markets have fluctuatedand decreased slightly. 7
  16. 16. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSTable 2: Wine Consumption in South AfricaWINE CONSUMPTION IN SOUTH AFRICA LITRES TOTAL % * NATURAL ** FORTIFIED ** SPARKLING YEAR TOTAL CHANGE WINE WINE WINE 1992 289 118 099 48 193 400 8 079 200 345 390 699 0.2 1993 296 060 744 35 297 200 8 381 400 339 739 344 -1.6 1994 320 378 032 36 509 698 8 568 835 365 456 565 7.6 1995 342 100 466 36 236 207 7 940 366 386 277 039 5.7 1996 359 748 332 37 975 562 7 928 130 405 652 024 5.0 1997 356 469 511 37 607 040 7 572 313 401 648 864 -1.0 1998 343 320 015 33 114 486 8 207 425 384 641 926 -4.2 1999 351 005 051 30 605 029 9 338 277 390 948 357 1.6 2000 355 203 198 28 430 650 5 605 035 389 238 883 -0.4 2001 355 660 131 28 430 650 6 193 564 390 284 345 0.3 2002 350 703 464 29 700 000 7 450 000 387 853 464 -0.6 2003 308 196 740 30 000 000 7 900 000 346 096 740 -10.8 2004 308 707 457 31 000 000 8 100 000 347 807 457 0.5 2005 299 792 670 32 000 000 8 300 000 340 092 670 -2.2 2006 298 605 362 33 500 000 8 600 000 340 705 362 0.2 2007 312 129 717 34 150 000 9 450 000 355 720 834 4.4 2008 312 354 446 33 700 000 10 110 000 356 164 446 0.1* Includes wine used in grape-based liquor and alcoholic fruit beverages.** Figures based on various industry sourcesSource: Sawis 2009 annual reportSouth Africa‘s total wine consumption in 2008 was according to Table 2 just over 350 million litres.The table shows that since 1996, minus small fluctuations, wine consumption has been decreasing,with consumption in 2008 well below the high of 1996.Packaging choices could constitute an important way to increase consumption as new target marketsmay prefer wine packaged to better suit their lifestyle. The young 18 – 34 market has been targetedby producers as a demographic for the alternative packaging segment. This younger target marketwho were previously not wine drinkers, is increasing especially in Europe. (Rexam website, 2009)Carolyn Barton, wine buyer for Makro, agrees that there is a market for wine in AP, including morepremium brands, and that alternatively packaged wines are suited to many different target markets.(Barton, 2009)However, Mandy Van Wyk, from Johnny‘s Liquor, a premium wine store in Pretoria, disagrees andbelieves that, before producers start introducing new packaging formats which could jeopardize anyincrease in consumption, wine consumption per capita in South Africa needs to increase (Van Wyk,2009) 8
  17. 17. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSMark Norrish, Ultra Liquors says ―Packaging is ultra important, and, were I in the industry, would bevery careful in changing the status quo, but I would keep a close eye on other countries and localsuppliers as to what they do. Look at the success of the 1.5l Van Loveren wines. Consumers arewary of change and take a long time to embrace it.‖ (Norrish, 2009) Ultimately, packaging to a lesseror greater extent will influence wine sales and wine consumption.2.2 South African statistics – wine exportsTable 3: South African ExportsEXPORTSTOTAL QUANTITY OF WINE EXPORTED EXPORT NATURAL FORTIFIED SPARKLING TOTAL AS % OF YEAR TREND WINE WINE WINE LITRES WINE PRODUCTION 1997 107 972 398 1 265 296 805 048 110 042 742 20.1 1998 115 782 195 1 116 766 524 676 117 423 637 106.7 21.6 1999 126 263 186 695 535 809 619 127 768 340 108.8 21.4 2000 139 800 022 471 513 685 237 140 956 772 110.3 26.1 2001 175 978 105 548 388 779 299 177 305 792 125.8 33.4 2002 215 511 730 520 936 1 360 842 217 393 508 122.6 38.3 2003 236 374 105 525 789 1 564 707 238 464 601 109.7 33.5 2004 265 761 913 413 394 1 552 886 267 728 193 112.3 38.4 2005 279 128 331 406 982 1 537 824 281 073 137 105.0 44.7 2006 269 166 556 486 549 2 018 235 271 671 340 96.7 38.3 2007 309 355 571 405 696 2 779 364 312 540 631 115.0 42.8 2008 407 377 980 423 207 3 952 009 411 753 196 131.7 53.9Source: Sawis 2009 annual reportWhilst the local market has seen an overall decline in wine consumption, according to the data inTable 3 the total quantity of wines exported has boomed. Ten years ago the export marketrepresented 21.6% of South Africa‘s total production; in 2008 it represents almost 54%. There hasbeen a steady decrease in fortified wine exports, due the category‘s decline in popularity, howeverthere has been a consistent growth in exports of natural and sparkling wines. 9
  18. 18. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSTable 4: South African Exports: Packaged in BulkPACKAGED AND BULK NATURAL WINE EXPORTS PER COUNTRY - LITRES 2007 2008 TREND 2008/2007 COUNTRY BLANC DE TOTAL TOTAL WHITE RED NOIR / ROSé TOTALUNITED KINGDOM 87 028 641 110 638 792 119 126 209 127GERMANY 59 541 557 67 361 732 107 118 107 113THE NETHERLANDS 29 027 417 29 276 173 104 101 95 101SWEDEN 25 967 932 28 790 949 104 115 361 111ANGOLA * 8 544 964 24 551 122 121 306 2 287RUSSIA 2 544 415 18 345 447 1 566 121 3 351 721U.S.A. 10 659 089 16 624 760 257 78 92 156DENMARK 13 364 361 15 675 853 111 118 255 117CANADA 12 984 633 13 563 548 159 77 236 104NEW ZEALAND 5 769 528 10 902 742 173 211 640 189BELGIUM 9 572 926 8 753 666 97 88 68 91FRANCE 6 945 047 8 422 861 104 138 108 121FINLAND 4 055 992 5 786 820 126 164 9 221 143AUSTRALIA 744 609 5 630 362 981 528 186 756REPUBLIC OF IRELAND 4 722 993 5 445 105 107 124 170 115SWITZERLAND 4 425 953 5 264 610 126 112 108 119CHINA 1 249 820 4 334 729 240 361 95 347NIGERIA * 1 231 395 2 172 938 161 181 66 176CZECH REPUBLIC 419 264 2 055 255 723 362 122 490KENYA 2 187 420 1 798 102 88 77 137 82NORWAY 1 602 197 1 787 713 148 106 28 112JAPAN 1 354 792 1 783 658 145 124 231 132ROMANIA 39 241 1 477 170 8 596 143 156 3 764UNITED ARAB EMIRATES 899 838 1 468 698 151 172 244 163TANZANIA 1 301 083 1 238 752 96 93 175 95OTHER COUNTRIES 13 170 451 14 226 405 104 107 155 108TOTAL 309 355 558 407 377 962 137 128 133 132Source: Adapted from Sawis 2009 annual reportOf South Africa‘s wine export destination countries, the top 10 destinations as listed in Table 4,contribute around 90% of the export total. The UK alone constitutes a large portion of South Africa‘sexports. The UK produces very little of its own wines and mainly relies on imported wines to satisfyits demand. Around one billion bottles of wine are consumed in the UK every year, making it a vitaltarget market for South African wine exporters. It is one of the countries that are at the forefront intrying to curtail its packaging waste. (WRAP: Bottling wine in a changing climate, 2009)As UK retailers are increasing their targets and goals to reduce their carbon footprint, internationalwine suppliers including South Africa are under pressure to conform; for example, UK supermarketSainsbury‘s aims to reduce their CO² emissions by 25% by 2012. (Davis, H. 2008) 10
  19. 19. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSSouth African producers need to be aware that their packaging choices in the not too distant futurecould have a direct impact on their business, especially where wine exports are concerned. Focusingon sustainable packaging could help ensure that producers do not miss out in gaining market sharefrom other international wine producers who are taking strides in this area, such as Australia.President of Boisset Family Estates, Jean Charles Boisset says, ―We are very lucky to have abeautiful product in wine. It‘s cultural, traditional and has a strong sense of identity. It offers a greatway to demonstrate to the world what can be done in sustainability and to explain how we can makethe world a better place.‖ (Kalkowski, J. 2008)Environmental concerns, plus cost management due to the global economic crisis have increasedsustainable development, although critics still argue that initially higher costs are incurred toimplement sustainable practices. Where packaging materials cannot be re-used, the next best choicewould be to recycle. If this is not viable, then any waste should be disposed of efficiently, with as littleas possible going into landfill. Chateau Larose Trintaudon, was the first European vineyard to becertified for sustainable development in 2004 and is owned by insurance company EGF-Allianz.General Director, Bruno Pastre says, ―We manage to do everything without spending more, we just doit more intelligently.‖ (AFP, 2009)Wine writer, Oz Clarke, acknowledges that climate change is a reality and that savvy wine producersand distributors could use this to their benefit. By being socially conscious they could be seen ascaring for the environment which could see sales increase. (Livonen, J. 2009)Backsberg is South Africa‘s first carbon neutral winery. It offsets all of the carbon emissions that aregenerated in the production process. An online calculator for businesses to work out their carbonfootprint is available online. Simon Back, from Backsberg, says that the company has already movedmost of its ranges to lightweight bottles. Aside from the environmental concern, he feels ‗green‘packaging options will become a buying criterion in certain markets, especially export markets in thefuture. He says that the South African consumer is currently resistant to change and is still a longway away from accepting quality wines in AP. (Back, 2009) 11
  20. 20. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASS2.3 Legal obligations and requirementsThe South African Constitution states: ―Everyone has the constitutional right to have an environmentthat is not harmful to his or her health and to have the environment protected for the benefit of presentand future generations through reasonable legislative and other measures that—(a) prevent pollution and ecological degradation;(b) promote conservation; and(c) secure ecologically sustainable development and use of natural resources while promotingjustifiable economic and social development‖This can be seen in the recent Waste Act: Act No. 59, 2008 NATIONAL ENVIRONMENTALMANAGEMENT: WASTE ACT, 2008 “To reform the law regulating waste management in order to protect health and the environment by providing reasonable measures for the prevention of pollution and ecological degradation and forsecuring ecologically sustainable development; to provide for institutional arrangements and planning matters; to provide for national norms and standards for regulating the management of waste by all spheres of government; to provide for specific waste management measures; to provide for the licensing and control of waste management activities; to provide for the remediation of contaminated land; to provide for the national waste information system; to provide for compliance and enforcement; and to provide for matters connected therewith.”The main objectives of Act No. 59, 2008 include -‗to protect health, well-being and the environment by providing reasonable measures for—(i) minimising the consumption of natural resources;(ii) avoiding and minimising the generation of waste;(iii) reducing, re-using, recycling and recovering waste;(iv) treating and safely disposing of waste as a last resort;(v) preventing pollution and ecological degradation;(vi) securing ecologically sustainable development while promoting justifiable economic and socialdevelopment;(vii) promoting and ensuring the effective delivery of waste services;(viii) remediating land where contamination presents, or may present, a significant risk of harm tohealth or the environment; and 12
  21. 21. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASS(ix) achieving integrated waste management reporting and planning‘ (Government Gazette, 10 March2009)The bill is part of the government‘s plan to reduce and dispose of waste, with the aim of achieving azero waste culture by 2022 as was drawn up by the Polokwane Declaration in 2001. Part of this planincluded a target of waste reduction and disposal by 50% in 2012. To date however, there is still ayearly increase in waste volumes to landfills. (PACSA, 2010)As an important part of The National Waste Bill, the Department of Environmental Affairs and Tourism(DEAT) has the right to an industry waste management plan, which includes the mechanism ofExtended Producer Responsibility (EPR). According to Act No. 59, 2008 the EPR puts responsibilityand accountability on producers, bottlers and packers to design packaging so that it can be reduced,re-used, recycled or recovered. This can be hard for producers as there are very few benchmarks tofollow. To measure the business and environmental impacts of a specific packaging a Life CycleAnalysis (LCA) study could be undertaken. This examines the environmental impact at each stage ofa product‘s life cycle. (recycling waste online, 2010), (PACSA, 2010)Executive director of PACSA, Andrew Marthinusen, says ―All of the players in the packaging industry –raw materials suppliers, converters, brand owners, importers, the wholesale and retail sectors, therecycling industry and government need to work together in all of these areas as the consequences ofnot fixing the perceived problem of packaging waste could be very expensive for our industry.‖(PACSA, 2010)Protection of the environment is not only the responsibility of government, cities and largeorganizations, but also the responsibility of individuals. By recycling waste and packaging, water andenergy usage among other natural resources are conserved. Individuals need to incorporate recyclinginto their daily routines for recycling to actually make a difference. (Glass Recycling Company, 2009)Consumer education focusing on the reliability, sustainability and benefits of alternative packaging isvital if consumers are going to embrace these alternative products. Wineries also fear consumerrejection based on packaging choices.Act No 59, 2008 also notes that ‗poor waste management practices can have an adverse impact bothlocally and globally‘. Internationally, the EC Directive 94/62/EC on Packaging and Packaging Wastewas put into operation in the United Kingdom through the Producer Responsibility Obligations 13
  22. 22. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASS(Packaging Waste) Regulations 1997 which sets targets for the recovery and recycling of packagingwastes and the Packaging (Essential Requirements) Regulations 1998 that specify design standards.The main purpose of the Packaging Directive is to create producer accountability for packaging andpackaging waste. (recycling waste online, 2010)Packaging bodies and councilsThere are numerous bodies in South Africa and overseas whose prime focus is packaging, in all of itsguises. These councils, institutions and bodies can lend support, share expertise and knowledge inthe field of packaging, including:Packaging Council of South Africa (PACSA), is a voluntary body where members are categorized intoConverter, Associate and Affiliate members, representing more than 60 000 employees. Convertersgenerate almost 70% of the revenue for the entire packaging industry. Plastics Converters Association(PCA) is undertaking a study in South Africa to assess the suitability of controlled energy as a heatand power source from waste incineration. Some plastics have a 40% higher calorific value than coal.This energy source is used in Europe and it is hoped it will eventually be implemented in South Africa.Associates represent the raw material suppliers and the Affiliates are customers. PACSA isparticularly concerned with environmental issues and represents the views of its members on nationalissues. (PACSA: environment, 2010)The aims and objectives of Institute of Packaging of South Africa (IPSA) include, amongst others,furthering education standards in the packaging sphere and promoting the arts, sciences andtechnologies in the field of packaging. (IPSA, 2010)Netherlands Packaging Centre (NVC), is a leading training, education and information providerfocusing on innovative and sustainable packaging media. Whilst its focus is primarily in theNetherlands, membership is open to any company in the entire packaging supply chain, who has abusiness presence in the Netherlands. (NVC, 2008) 14
  24. 24. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSCHAPTER 3PACKAGING ALTERNATIVES: GLASS “We have to shift our emphasis from economic efficiency and materialism towards a sustainable quality of life and to healing of our society, of our people and our ecological systems.” Janet Holmes à Court.INTRODUCTIONGlass is hard and inert, all but impenetrable by oxygen, carbon dioxide and most liquids. It is alsobrittle and breakable. It is transparent or quasi-transparent and allows light penetration. Commoningredients that go into glass production are sand (SiO2 silica), Soda ash (sodium carbonateNA2CO3) and Limestone (calcium carbonate or CaCO3) or dolomite (MgCO3). The actualcomposition of the glass depends on its final usage; in essence, the ingredients that are meltedtogether and cooled rapidly to form a firm structure. (Lenntech website, 2009)Glass bottles are used for a variety of different beverages, and historically wine in glass bottles hasbeen the most common form of wine packaging for wines across much of the price point spectrum,from entry-level easy drinking wines, to ultra-premium brands. The main characteristics of glass suitwine storage well. Millions of glass bottles are produced daily, with wine in glass bottles dominatingover 95% of the global wine industry (WRAP case study). One of wine‘s key attributes is its long-lasting quality, making glass an appropriate choice. Plus it is readily and widely available. (WRAPcase study: lightweight wine bottles)Yet glass is not only a practical choice for wine, it has become an emotional factor too. There is asensory experience associated with glass wine bottles, the pop of the cork, clink of the bottles, the 16
  25. 25. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSelegance of serving wine etc. Mandy Van Wyk, Johnny‘s Liquor, says that there is so much ‗romance‘associated with opening a bottle of wine, specifically a glass bottle with a natural cork.Certain consumers and also producers are skeptical of alternative packaging; they see high qualityproducts, with a high price that should be complemented with equally high quality packaging.Consumer psychologically translates the bigger, heavy bottle as being more elite and expensive andthat this style of packaging is necessary to portray a certain image. Ultra-premium brands that areproduced in small quantities are more appropriate for heavier packaging as opposed to entry-level andstandard wine ranges. Champagne and sparkling wines that undergo bottle fermentation, find glassthe best packaging option available as it is tough enough to withstand the pressure build-up during thesecondary fermentation.Most premium brands only use glass bottles, as they are perceived as traditional, up-market and idealfor long-term storage and maturation. Certain Old World wine appellations, such as Bordeaux andBurgundy would not consider any of their premium wines in anything else, partly due to historicalreasons, and marketing with traditional bottle shapes and colours being synonymous with theseregions. For example, traditional glass wine bottles from Bordeaux have straight sides with highshoulders with colours varying from dark green for red wines, light green for white wines and clearglass for sweet, dessert-style wines. Whilst in Burgundy and the Rhône Valley bottles have tallsloping shoulders, with a deep punt and are dark green in colour.In the eyes of the consumer, glass still has the edge over alternatives. Heidi Bartis, CommunicationManager at Distell, says ―Recently a global research study was conducted by branding specialistsSiegel+Gale, in which more than 2 900 consumers in nine countries were polled about theirpreferences regarding food and beverage packaging. The study found a 93.5% preference for glasspackaging of wines based on perceptions of purity, safety, quality, versatility and recyclability.(Source: Supermarket & Retailer).‖ (Bartis, H. 2009) In 2008 in South Africa over 9 200 000l (SAWIS)of South African wine was packaged in 750ml glass bottles. This was a 7% increase on 2007.On the down side, it is far more difficult to hold a heavy bottle and pour the contents eloquently intodrinking glasses as compared to serving from a lighter bottle. Heavy glass bottles also increase thefinal cost per bottle to the consumer; they are more expensive for producers to produce and requirecorks or screwcaps, foils and labels. This translates into higher mark-ups by producers, retailers andhoteliers. Sneaky marketers could also use heavy bottles to promote a ‗lesser‘ product, enticingconsumers to believe they are purchasing a premium wine. 17
  26. 26. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSSome producers feel that they have no choice but to use heavy packaging for their premium rangesand resort to importing premium packaging materials from abroad (specifically bottles and corks),which in turn, is costly in terms not only of money but also greenhouse gas emissions, resulting in afar larger carbon footprint. Countries such as South Africa only have a few local bottle suppliers thathold a monopoly on the supply market and have limited offerings available, although the choicesavailable locally are growing.Renowned wine commentator, Jancis Robinson, has, in the past, lashed out at heavy wine bottles.Robinson launched a ‗name and shame‘ campaign on her website, encouraging subscribers to listwines that they had encountered in very heavy bottles. (Livonen, J. 2009)According to the UK‘s WRAP GlassRite Wine project case study, glass bottles account for almost 40%of all household beverage packaging (in the UK), generating close to 500 000 tonnes of packagingwaste. The same case study reveals that an estimated 150 000 tonnes of packaging could be savedif reductions in bottle weight alone were made. (WRAP case study: lightweight glass bottles) 18
  27. 27. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSTable 5: South African Wine Sold in Glass ContainersTYPE OF WINE SOLD IN 750 ml GLASS CONTAINERS LITRES Trend TYPE OF WINE 2002 2004 2006 2007 2008 2008/2007Natural White Chardonnay 2 444 841 2 659 949 3 206 667 3 122 636 3 233 076 103.5 Sauvignon Blanc 4 360 107 5 159 076 7 184 813 8 098 087 8 756 066 108.1 Chenin Blanc * 1 746 286 2 367 604 2 225 445 2 680 921 120.5 Dry White 21 837 027 19 732 452 19 078 712 19 228 740 21 130 820 109.9 Semi Sweet 8 028 644 6 191 079 6 479 902 6 213 353 5 658 241 91.1 Total White 36 670 619 35 488 842 38 317 698 38 888 261 41 459 124 106.6Natural Red Cabernet 3 712 670 3 269 568 4 388 916 4 373 266 4 692 006 107.3 Pinotage 2 307 656 2 285 192 2 798 894 2 849 294 2 848 480 100.0 Shiraz 1 692 561 2 027 543 3 020 143 3 057 393 3 312 598 108.3 Merlot 1 999 522 2 257 701 3 151 830 3 417 955 3 984 226 116.6 Other red 14 469 800 17 509 796 19 936 903 20 424 713 20 932 235 102.5 Total Red 24 182 209 27 349 800 33 296 686 34 122 621 35 769 545 104.8Rosé / Blanc de Noir 4 379 854 4 827 150 4 478 707 3 983 543 5 748 467 144.3Sparkling Cap Classique 1 105 573 1 524 605 1 497 095 1 770 766 1 764 148 99.6 Other Sparkling 5 910 828 6 441 026 6 708 930 7 384 634 7 943 038 107.6* Only available from 2003Source: Sawis 2009 annual reportThere has also been consistent growth in the value of wine packaged in glass bottles. Table 5,above, shows that across the board, all different grape cultivars and styles of wine in glass haveincreased in average wholesale price, indicating that quality wines are still being packaged in glass. 19
  28. 28. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSTable 6: South African Wine Sold in Glass Containers on the Local MarketGLASS CONTAINERPARTICULARS OF PACKAGED WINE SOLD ON THE LOCAL MARKET DURING 2008 LITRES TREND CONTAINER 2008/2007 2002 2004 2006 2007 2008 SIZE < 750 ml 1 998 323 1 954 009 1 578 069 1 505 399 1 281 989 85.2 % of glass 1.8 1.7 1.2 1.1 0.9 750 ml 65 233 233 67 665 791 76 093 090 77 050 891 82 980 715 107.7 % of glass 59.1 59.7 58.0 56.9 57.2 1l 17 520 694 18 897 955 20 117 416 20 417 656 20 649 984 101.1 % of glass 15.9 16.7 15.3 15.1 14.2 1,5 l - 2 l 18 831 949 17 174 267 24 596 118 27 932 931 32 180 258 115.2 % of glass 17.1 15.2 18.8 20.6 22.2 4,5 l 6 754 764 7 587 110 8 370 923 8 095 923 7 492 568 92.5 % of glass 6.1 6.7 6.4 6.0 5.2 OTHER 107 707 63 771 362 490 329 137 490 022 148.9 % of glass 0.1 0.1 0.3 0.2 0.3 TOTAL 110 446 669 113 342 903 131 118 106 135 331 937 145 075 535 107.2Source: Sawis 2009 annual reportTable 6 indicates the most common size of glass wine bottles is 750ml. In the past five years therehas been a steady increase in 750ml glass production, as well as larger bottles: 1l, 1.5 – 2l, 4.5l.Interestingly, bottles smaller than the standard 750ml, have decreased in production in recent years.This could either be due to a change of consumer drinking habits, i.e. less sweet wines (many dessert-style wines are packaged in 375ml and 500ml bottles) or due to a move to alternative packaging, i.e.single-serve aluminium beverage cans. 20
  29. 29. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSTable 7: South African Wine Exported in Glass Containers vs. Other AP 2007 2008 TREND 2008/2007 COUNTRY GLASS TOTAL GLASS TOTAL GLASS TOTALUNITED KINGDOM 55 788 905 65 832 338 70 628 774 86 072 993 126.60 130.75SWEDEN 6 040 955 25 919 814 5 804 934 27 782 239 96.09 107.19THE NETHERLANDS 17 879 872 18 709 668 20 383 640 20 837 390 114.00 111.37GERMANY 15 035 958 15 327 456 15 122 366 15 597 338 100.57 101.76DENMARK 6 549 227 9 822 411 7 846 245 11 740 626 119.80 119.53U.S.A. 9 547 941 9 598 050 8 400 676 8 472 468 87.98 88.27CANADA 7 178 046 7 209 630 7 557 479 7 608 647 105.29 105.53FINLAND 2 012 827 3 346 642 2 141 366 4 833 200 106.39 144.42BELGIUM 4 676 639 4 870 468 4 479 437 4 806 221 95.78 98.68REPUBLIC OF IRELAND 4 669 642 4 722 994 4 256 213 4 267 383 91.15 90.35NEW ZEALAND 606 447 642 927 2 423 046 2 794 542 399.55 434.66AUSTRALIA 648 725 648 725 2 353 518 2 353 518 362.79 362.79NIGERIA * 1 211 115 1 231 395 2 168 138 2 172 938 179.02 176.46KENYA 816 652 2 187 420 638 242 1 777 282 78.15 81.25JAPAN 1 218 892 1 245 592 1 468 550 1 543 538 120.48 123.92NORWAY 439 649 1 287 403 513 213 1 502 216 116.73 116.69UNITED ARAB EMIRATES 545 266 899 838 829 673 1 468 698 152.16 163.22ANGOLA 279 747 363 347 1 171 904 1 421 036 418.92 391.10RUSSIA 1 446 987 1 542 063 1 121 208 1 254 372 77.49 81.34TANZANIA 727 574 1 301 082 732 476 1 238 752 100.67 95.21CHINA 603 448 738 580 861 266 951 784 142.72 128.87FRANCE 509 098 517 198 814 139 856 655 159.92 165.63SWITZERLAND 1 522 773 1 523 073 829 803 829 803 54.49 54.48POLAND 822 526 842 126 823 325 827 925 100.10 98.31MAURITIUS * 550 456 558 292 580 677 589 633 105.49 105.61OTHER COUNTRIES 7 736 610 9 676 630 7 895 740 9 849 317 102.06 101.78TOTAL 149 065 977 190 565 162 171 846 048 223 450 514 115.28 117.26Source: Adapted from Sawis 2009 annual reportTable 7, illustrates how many glass wine bottles are currently being exported and the total amount ofglass bottles to alternatively packaged wine products to each market. In 2008 Sweden, U.S.A,Belgium, Republic of Ireland, Kenya and Switzerland all imported less wine from South Africa in glassbottles than in 2007. In these countries more wine was imported in alternative and bulk packaging,whilst the total South African wine imported was still more in total than the previous year.Consumers and producers alike are resistant to change as they believe that glass is the traditionalpackaging vessel for quality wine and that AP is for inferior and entry-level products. Whilst this mayhave been the predominant view in the past, the wine industry will need to adjust its thinking asproducers and retailers are, or will soon be, under pressure to reduce their carbon footprint. Glassmanufacturers need to adapt their production methods and increase the alternatives available, in orderto retain their market share. 21
  30. 30. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSTRADITIONAL GLASS BOTTLESAdvantages:- Historical value- Widely accepted by consumers and retailers- Perceived as premium wine packaging option- Suitable for long-term maturation- Perceived as ‗greenest‘ wine packagingDisadvantages:- Heavy- Cumbersome to distribute- Breakable: stock losses/ injuries to bottle handlers- Subject to harmful UV light penetration (predominately clear and light-coloured glass)- Temperature variation can be harmful to contents- If closed with natural cork, possibility of ‗cork taint‘3.1 LIGHTWEIGHT GLASS BOTTLESThrough modern technology and numerous trials, glass producers have been able to reduce theoverall weight of some wine bottles. These lighter weight wine bottles look identical to their heavier,traditional counterparts. Internationally these are being used in the UK and USA amongst others. InSouth Africa, Consol glass has a few lightweight bottles on the market to date, with others to follow inthe future.Consol, South Africa‘s largest wine glass manufacturer, with over 80% market share is one of theparticipants of WRAP GlassRite Wine project. Two of the most popular lightweight bottles currentlyavailable that are produced locally by Consol are: The Claret bottle 1082 (Bordeaux-shape bottle) andHock bottle 710 Riesling-styled bottle). According to Louise Jager, Consol Glass, international trendsare for lightweight, claret-shaped bottles.Australian glass bottle manufacturer, O-I, produces a range of bottles known as ‗Lean and Green‘ thatare lighter in weight than traditional packaging with some bottles being up to 28% lighter. At theircurrent production levels this equates to a saving of more than 11 000 tonnes of carbon dioxide 22
  31. 31. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSannually. Following trials, O-I says that there may be further weight reductions in the future.(Hospitality magazine)It can be argued that certain products, such as wines that are meant to be cellared for a few decadesmay benefit from being stored in traditional heavy bottles. The coloured glass assists in preventinglight ingress, not the thickness of the glass, so wine should still mature equally as well in lighterbottles. Arniston Bay, whose wines are generally produced to be easy drinking wines that are readyto consume from the shelf, are moving away from traditional green glass and moving to c`lear glass tofacilitate easier recycling. (Arniston Bay website 2009)Some fear the integrity of a wine‘s contents cannot be guaranteed if in non-traditional packaging.Whilst wine can be affected by light, specifically UV light, a GlassRite study suggests that whilst alarge reduction in bottle thickness occurs during lightweighting, only a small fall in light protection willoccur. To combat this, producers could use more amber glass which has very good light-blockingproperties and use coatings or additives to the glass. As amber glass is not as popular for certainwine styles and brands, green glass with a higher colour intensity could also be used. Retailers canchange the direction and intensity of in-store lighting to combat light damage on the shelf. (WRAPcase study: lightweight wine bottles)Other skeptics argue that lightweight options are not sufficiently strong enough for certain products, asit is assumed that they have thinner walls. Actually, lightweight bottles can be stronger. Modernmanufacturing processes such as the ‗Narrow Neck Press and Blow‘ result in a more even glassdistribution than the ‗Blow and Blow‘ technology frequently used in heavier bottle production.In South Africa, Nampak Wiegand Glass has introduced new ‗Narrow Neck Press and Blow‘technology at their Roodekop facility, south of Johannesburg. They expect a 20% reduction in weightper bottle, whilst keeping the same height and width dimensions as before. They are expected toretail at a cheaper price, and in the logistics chain more bottles will be able to be loaded onto a pallet.The equipment is in place and Nampak have rolled out lighter-weight beer bottles, but have notproduced any lighter wine bottles to date. Production in this regard is scheduled to start during 2010.(Hoogenhout, K. 2009)With regards to bottles used for sparkling wine, being a pressurized product, there are limits to howmuch bottles can be lightweighted to avoid them becoming potentially hazardous and structurallyunsafe. 23
  32. 32. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSWhilst some consumers are still skeptical about accepting wine in alternative packaging, lightweightbottles should still be able to appeal to mainstream markets, as they can be designed is such a way asto mimic the appearance of their traditional heavier counterparts. (WRAP case study: lightweight winebottles)Figure 1: Results of impact leading on the outside surface of a wine bottleSource: WRAP: Bottle strength and the manufacture of lighter weight bottles„Going Green‟Andy Gale, Tesco Category Technical Manager for Beers, Wines and Spirits said this in reference toreducing the company‘s CO2 emissions, ―Glass is by far the heaviest component of our packagingwaste and we believe we can make a substantial contribution to our target by reducing the weight ofthese containers.‖Louise Jager, Consol Glass South Africa, agrees and says that the swing to lightweight bottles bySouth African wine producers has been mainly as a result of export destination countries‘ pressure toreduce costs and environmental damage. (Jager, L. 2009)―The Australian wine industry is at the forefront of new technology,‖ says Vince O‘Brien from theAustralian Wine Research Institute (AWRI), ―In addressing that, the wine industry is looking to uselightweight glass, therefore reducing the contribution of the ultimate product to greenhouse emissions.‖O‘Brien also says that they are looking at decreasing packaging size and at PET bottles as areplacement for glass. (Hunt, K. 2008)In partnership with Kingsland Wines & Spirits and Quinn Glass, Tesco has introduced some own-label 24
  33. 33. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSwines in lighter bottles that are of a traditional shape and height, to retain the brand image, whilst stillbeing suitable for high speed filling. (WRAP case study: lightweight glass bottles)According to findings conducted by WRAP, up to 30% reductions of CO2 emissions from thetransportation of lighter weight bottles can be achieved. In South Africa the Arniston Bay Tides rangeis being packed in bottles 100g less in weight than previous bottles.Consumer PerceptionsDo lightweight bottles tarnish the consumers‘ perceptions of quality? UK retailer, The Co-operative,has noted that lighter bottles have not negatively impacted on consumers‘ buying decisions. A studyby the University of Bangor, for GlassRite Wine, shows that, as opposed to bottle weight, bottle heightplayed a larger part in consumers‘ attitudes to wine quality. To minimize the effect on consumerpreference, lighter bottles should be of a similar height and shape to traditional bottles. (WRAP casestudy: lightweight wine bottles)Nick Zema, chairman of the Coonawarra Vigneron‘s Association, says ―I think there‘s a lot of merit inlighterweight glass. It‘s one of those things that over time will evolve.‖ (Hunt, K. 2008) Louise Jager,Consol Glass, agrees; ―I believe that there will always be light- and heavy- weight bottles in the wineindustry – but the high volume, entry level wines will move to lightweight without a doubt. They needto, in order to remain commercially competitive.‖ (Jager, L. 2009)The trend may follow trail of the introduction of screw caps. When screw caps were first introduced,there was a stigma attached to using them. Nowadays, mainstream and some premium wines arebottled with screw caps and are readily accepted by the majority of consumers.Examples of lightweight bottles in the market place:There is no doubt that lightweight glass bottles dramatically reduce the carbon footprint of transportingwine. A range of bottles, Ecova, produced by Europe‘s largest glass manufacturer Saint Gobainweighs up to 90g less than a traditional bottle and is produced from recycled glass. (AFP, 2009)Constellation Europe, with its large portfolio of wines, has decreased the original 495g bottle weight oftheir Stowells and Echo Falls ranges by 12%. With sales of 55 million units, over 3 000 tonnes ofglass and over 2 000 tonnes of CO2 emissions are being saved annually. (WRAP case study:lightweight wine bottles) 25
  34. 34. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSChilean winery Viña Ventisquero Ltd, was the first international producer to lightweight bottlesspecifically for the all important UK market. (WRAP case study: lightweight wine bottles)Distell has also started lightweighting some of their bottles, reducing the weight of bottle ofmainstream brands from 600g to 450g. Distell estimates that with lightweighting of other productsacross their portfolio, they will annually save over 6 400 tons of glass and reduce carbon emissions by14 000 tons. (Bartis, H. 2009)Many other South African producers are starting to follow suit, with lightweight bottles already in theirproduct range or being considered.3.2 RECYCLED GLASSWhat is Recycled glass packaging?Generally, the recycling process of most products requires less water, energy and other resources torecycle materials and turn them into new products. Cullet refers to recycled and glass waste. Itmelts at a lower temperature than new glass production, therefore manufacturers use less resourcesto melt the same quantities of glass and quality is not compromised. (Glass Recycling Company,2009)1 ton of glass = 1 ton of cullet1 ton of glass = 1.2 tons virgin glass production materialLouise Jager, Consol Glass says about cullet usage, ―Use of cullet in the furnace is slightly more costeffective. However, collecting and processing cullet from landfill and other collection centres isexpensive primarily due to the distances (travelled) in SA‖. Increasing the recycled content of glasspackaging is one of Consol Glass‘s primary carbon management strategies. (Jager, L. 2009) 26
  35. 35. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSAnother way to reclaim packaging is to re-use it in its original format. Glass bottles are sturdy andcapable of withstanding rigorous cleaning procedures and handling, making this a viable option. There-use of glass is dependent on how easy it is to collect, return and clean them in order for bottles tobe ready for re-use. (PACSA: environment, 2010), (recycling waste online, 2010)An additional amount of energy is required to actually recover and recycle the glass, which still addsmore energy emissions to the carbon footprint. The bottle weight once the glass has been recycled isoften still the same as traditional bottle weights. Issues with carbon footprint still remain. The amountof space the bottles take up in a truck or container is the same as non-lightweight options.Figure 2: Glass Recycling Process  COLLECTION Glass is collected and taken to a processor.  SORTED Glass is sorted by colour, cleaned and broken.  CRUSHED Glass is crushed into tiny pieces called cullet.  MIXED Cullet is mixed with silica sand, soda ash and limestone.  MELTED The mixture is melted to a molten state in a furnace.  MOULDED The molten glass is poured into moulds.  COOLED The glass is cooled slowly to increase its strength.  PACKED & SHIPPED New glass containers are filled and returned to the shelf for resaleSource: The Glass Recycling Company, Accessed 26/07/2009 27
  36. 36. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSConsumers generally perceive that wine in regular glass bottles is the ‗greenest‘ option available, asglass was one of the first products they have become accustomed to recycling. However, it can onlybe seen as ‗green‘ if it is indeed recycled.4,7% of South Africa‘s total waste is made up of glass. Glass can be 100% recycled; the problem liesin the fact that only 25% of non-returnable glass containers that are produced in South Africa everyyear are collected from the waste stream for recycling before they end up in landfill. Locally glassrecycling stations are located throughout the country. This recycling rate is low, considering glass is100% and infinitely recyclable, and compared to recycling rates for other countries (Glass RecyclingCompany): Netherlands – 90%, Australia – 50% and the UK – 45%Figure 3: South African Glass Recycling Performance ReportSource: The Glass Recycling Company, Accessed 26/07/2009The question for retailers and consumers on the ‗green‘ front would then be to support lightweight, re-used or recycled bottles? Ideally the answer would be all three.LIGHTWEIGHT, RE-USED AND RECYCLED GLASS BOTTLESAdvantages- Less GHG emissions emitted during production- Lower carbon footprint during transport: for filling and thereafter during distribution (for lightweight bottles)- Maintains visual and tactile appeal similar to traditional glass bottles 28
  37. 37. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASS- Allows for traditional closures, i.e. natural cork- Easier to pour- ‗Green‘ appealDisadvantages- Suitability still needs to be established for bottle fermentation of Cap Classique- style wines- Breakability: stock losses/ injuries to bottle handlers- A large portion of GHG emissions are still produced in the recycling process- Weight of re-used and recycled bottles may be similar to that of traditional, heavier bottlesGlass SummaryWhilst certain boutique premium brands, sparkling wines and wines that require long term maturation,may still warrant the use of traditional heavy glass bottles, a ‗green‘ move by wine producers couldhelp reduce energy consumption, and increase customer appreciation. Complex questions remainabout how to increase recycling, and the mechanisms needed to boost it. One possibility would be tointroduce bottle refunds, in order to collect and re-use wine bottles. One advantage of this approach isthat bottling lines are already laid out for these bottles, making filling, corking and labelling relativelystraight forward. This approach would be even more energy efficient than recycling. It would also beeconomical for the producer and the consumer who could still enjoy the benefits of the heavierpackaging, knowing that it is in part ‗green‘. Disadvantages are that these bottles still need to becleaned properly before re-using and the logistics costs involved in collection of the bottles and theCO2 emissions used in this process.Local glass bottle suppliers need to offer more alternatives in terms of recycled bottles, lightweightbottles, etc. If the technology does not yet exist here, then partnerships should be formed withinternational suppliers.When exporting wine, producers and distributors should consider bulk shipping where applicable, andbottling wine in the final destination country. While this would considerably decrease the carbonfootprint in transporting wine, it would however, have a negative impact on the local economy, as therewould be job losses at packaging suppliers and bottlers due to less demand. For the local marketlighter weight bottles specifically for non-premium ranges should be employed and, where possible,they should be recycled. Distell actively supports the Glass Recycling Company and also makes useof returnable bottles where they can be re-used for certain products within stringent health and safetyspecifications. (Bartis, H. 2009) 29
  38. 38. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSConsumer perceptions need to change in regard to thinking that ‗bigger is better‘. The bettereducated the wine drinking consumer is on wine and packaging, the easier it will be for marketers tochange their thinking and for consumers to embrace AP wines. Perhaps a labelling system could beimplemented on South African wine bottles that indicates whether a bottle is lightweight, re-used orhas been recycled, to aid consumers in making informed decisions when purchasing products.Compared to other forms of AP wine packaging, most consumers are aware that glass bottles can berecycled and re-used. A significant infrastructure is already in place for glass recycling. (recyclingwaste online, 2010). The Glass Recycling Company uses money from its supporters to communicateto and educate consumers. It has also increased the number and availability of recycling bins aroundthe country. (PACSA, 2010)Consol Glass has invested millions of Rands in cullet colour sorting equipment in its Johannesburgand Cape Town plants. Glass can be sorted automatically by a light sensor into different colours andis sent to its respective recycling stations. (PACSA, 2010) 30
  39. 39. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSCHAPTER 4CONTEMPORARY PACKAGING ALTERNATIVES: PET BOTTLES “We shall require a substantially new manner of thinking if mankind is to survive.” Albert Einstein “The more people understand the cost of oil, the cost of energy, the cost of everything, the morepeople realize our efforts should be put into the quality of the wine rather than into the package itself.” Jean Charles Boisset. (Kalkowski, J. 2008)PET BOTTLESWhat is it?Polyethylene Terephthalate (PET) is a non-leaching food standard thermoplastic developed in the1970s. PET can be moulded into shapes and containers, including wine bottles. Louis Moodie, MondiSales Manager – PET & New Business, has received positive feedback from the wine industry inSouth Africa, in regards to wine in PET, with some winemakers seeing the product as innovative, whileothers feel a moral obligation to the environment to reduce CO2 emissions. (Moodie, L. 2010) PET bottles may be constructed in a single layer (monolayer) or be multi- layered. Monolayer PET bottles that are suitable for wine production are produced with an oxygen scavenging additive mixed into the PET before moulding to form an active barrier. This means a large concentration of active ingredient needs to be added, to prevent a diluting effect, as it has to cover the entire cross section of the wall of the bottle. Multi-layer PET bottles are typically constructed with three layers. The bottle wall consists of the inner & outer layer being made from conventional PET that has no oxygen scavenging additives included in it, which sandwiched in-between a nylon or EVOH passive barrier. This passive barrier will include an active ingredient for 31
  40. 40. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSoxygen scavenging purposes. As the active ingredient is spread over a much smaller area (the middlelayer) the concentration of the oxygen scavenging additives is much better.There have been concerns in the past about the ‗breathability‘ of plastic and that oxygen maypermeate through to the wine and taint the flavour of the wine. Bottle supplier, VIP Packaging‘s PETBusiness Manager, Daryl Black explains, ―We have been working on our PET wine bottle solution forsome time now with the objective of making sure we wouldn‘t compromise the taste of the wine,quality or aesthetics of the packaging.‖ (Packagingmag.com - Wolf Blass, 2009)Some of the different options to combat oxygen ingress are by using oxygen ‗scavenging‘ technologysuch as DiamondClear™ or MonOxbar Plus™scavenging technology and Plasmax internal siliconoxide barrier coating. Oxygen scavengers are are activated by the presence of moisture, thereforeonce the bottle is filled with wine. VIP Packaging‘s DiamondClear™ claims that, weight for weightDiamondClear™ active monolayer materials have around five times more oxygen absorption capacitythan other competing oxygen scavengers and limit the amount of oxygen that can permeate into thebottle. (Packagingmag.com - Wolf Blass, 2009)Constar International blend MonOxbar Plus™ into PET, which are formed into monolayer bottles.Wines in PET bottles with Plasmax internal silicon oxide barrier coating (from KHS Corpoplast NorthAmerica) eliminate oxygen permeation and carbon dioxide loss. The coating is a very thin, clearimpermeable layer of silica (SiOx) that is resistant to abrasion, delimitations and does not disintegrateover time. Plus it does not affect the appearance, taste or quality of wine. (Constar.net, 2009)Some claim concern over various scavenger technologies that purportedly start dissolving once theyare applied. Vice President of Operations at Artisan Wine Co. says ―After reviewing the systems onthe market, we selected Ball Corp.‘s Plasmax-coated bottles, because the silicon oxide is a passivebarrier. We can keep the bottles with the Plasma coating in inventory as long as necessary withoutlosing any of the barrier properties.‖ Similar to DiamondClear™ scavenging technology, this ultra-thincoating of nonreactive silica (SiOx) can be removed during recycling. (Packaging digest – PET bottleshave coating, 2009)Oxygen scavenging technology is available to South African PET producers through licenseagreements with international companies that have developed this technology. 32
  41. 41. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASSGREENCompared to the average 440g weight of glass wine bottles, PET bottles only weigh, on average 54g(Wolf Blass). WRAP together with Artenius PET Packaging (formerly Amcor), trialled prototype WolfBlass PET wine bottles in UK retail stores, such as Asda, Sainsbury‘s and Tesco‘s. (WRAP casestudy: lightweight glass bottles). ‗Developments in PET resin technology and conversion equipmenthave reduced package weights up to 31% since the introduction of PET 25 years ago. A two-litrepreform that weighed 68 gms in 1980 now weighs 47 gms. (Petcore, 2010) PET bottles produce fewer greenhouse gas emissions during the transportation of filled and unfilled bottles than glass bottle production. PETRA, the PET Resin Association for North America lists a case study undertaken in conjunction with Husky Injection Molding Systems Ltd. - ‗Beverage Package Performance in North America.‘ The LCA was undertaken with the following packaging alternatives for wine: a 750ml PET bottle, weighing 45g and a 750ml glass bottle, weighing 611.6g, both bottles were sealed with a 4.4g metal closure. Results concluded that PET had the lowest GHG emissions with 732.5 lbs/ 1 000 units compared to glass at 1 395.8 In regards to energy consumption again PET had the lowest consumption with 7 132MJ/ 1 000 units, followed by glass at 12 480 MJ/ 1 000 units (PETresin.org 2010)LOGISTICSIn its unfilled state, a PET bottle is around 90% lighter than a regular 750ml wine bottle. ThereforeGHG emissions are reduced during the production and transport. However, wine normally needs tobe transported in bulk to a PET bottling facility. (Packagingmag.com - Wolf Blass, 2009)Handling of bottles is safer than glass, with less chance of bottle production workers being injured bybroken glass and less chance of damage and stock loss through breakage to the full bottles duringtransportation.For filling PET wine bottles, wine could to be transported in bulk to a nearby PET bottling facility as notmany wine producers have the appropriate machinery needed to fill the bottles. This is an additionalcost in money and carbon footprint that needs to be factored in. As this form of wine packagingincreases in popularity bottling plants need to have the capacity to cope with quantities of wine.Etienne Skien, from Mondi, believes that PET bottles will fit on most bottling lines that are used for 33
  42. 42. WINE PACKAGING: ALTERNATIVES TO TRADITIONAL GLASS750ml glass bottles, with only minor adjustments needed to facilitate the change from glass to PET.(Skien, E. 2010)As bottling lines are expensive, only very large producers and distributors may have their own bottlinglines that are suitable for PET bottles. At present there is at least one mobile bottling plant in the Capethat bottles wine in PET at individual wineries. (Moodie, L. 2010) This is the most cost efficient optionavailable for smaller producers.PET cuts the transportation energy used in the global food supply chain in half. The totaltransportation energy (required to deliver packaging to filler and from filler to retailers) for an averagekg PET in the form of beverage packaging is 13.7 MJ diesel compared to 25.4 MJ per kg substitutedPET for the average glass beverage packaging‘ (Petcore, 2010) Plus in transporting bottles, 1000cases of glass bottles fill a container, whilst the same container can hold 1750 cases of PET bottles.(Kalkowski, J. 2008)SUITABILITYAnother benefit of PET is that the wine can be packaged in green bottles – made to mirror glass andbeing able to protect the wine from UV light better than clear glass. The bottles can be moulded intovarious shapes and sizes including the standard 750ml bottle and a 187ml bottle suitable for hotelsand airline use, as well as colours to mimic glass wine bottles i.e. green, amber, clear. Theshatterproof bottles are easy to handle, transport and pour. No special implements are needed toopen the bottles. Wrap around packaging is available, and paper with wet-strength properties assistsin labels resisting water when inserted in ice buckets. (Packaging mag: PET wine bottles havecoating, 2009)By blow-moulding the bottles, various shapes and sizes can be formed, such as Burgundy andBordeaux-style bottles. (Kalkowski, J. 2008). Bottles can closely resemble the look of glass, includingthe typical etching found around the base of wine bottles. (Polypet.co.za. 2008). PET can bepigmented to offer limited UV light transmission. In South Africa Polypet and Mondi produces PETwine bottles, with various sizes of PET wine bottles are available: 187ml, 750ml and 1 litre. Size forsize, PET bottles are cheaper to purchase opposed to a regular 750ml wine bottle. For producersbottling thousands of bottles, this can be a significant saving. 34